Health insurance debate loaded with intrigue

Last week, as the city’s human resources director headed through tunnels that connect municipal employees who work at City Hall to downtown’s underground food court, he was approached by signature gatherers who asked him to sign a petition. It essentially asked city leaders to reject a recommendation that the city change from BlueCross/BlueShield to CIGNA health insurance.

Omar Reid asked the petitioners who they worked for, and was told they worked for the Houston Organization of Public Employees. But when he pressed, they fessed up that it wasn’t HOPE that sent them. City Hall sources say it was a BCBS tactic.

City Council had a billion-dollar deal on its agenda Wednesday, and both companies played hard ball to win the business of 66,000 employees and family members.

CIGNA hired METRO and Sports Authority attorney (and 2009 mayoral runoff candidate) Gene Locke to lobby on its behalf, according to a lobbyist registration form he filed. State Rep. Garnet Coleman also worked on CIGNA’s behalf. BCBlS countered with Chad Holley attorney, former city attorney and rumored mayoral candidate Benjamin Hall.

“All of them have the Brahma bulls of lobbyists,” said Councilwoman Jolanda Jones. “This is like King Kong versus Godzilla.”

Entering on BCBS’s side was an independent physicians’ group, many of whose members are minority doctors. They complained that the new company excluded them as participating providers in parts of the plan.

Lee Barnes, the group’s executive director, worked the hall outside council chambers on Tuesday. And he had his concerns taken seriously by several council members who wanted to assure that there is an adequate Minority/Women/Disadvantaged Business Enterprise component to the deal.

CIGNA may have executed its checkmate move on Wednesday morning, when its representatives struck a deal with Barnes in the hallway outside council chambers, signing a letter of intent that they will work with Barnes to include his group in the plan.

Up on the dais, Council approved CIGNA for three years at about $300 million a year. CIGNA was about $4.6 million cheaper than BCBS, according to a council memo. There was one catch to the approval. City Attorney David Feldman is to go back to CIGNA to try to squeeze the company for a slightly better deal, which he has until next Wednesday to bring back to council for a final vote.